Medical Device Refurbishment Gruben.pdfIn the context of this presentation “Refurbishment of Used...
Transcript of Medical Device Refurbishment Gruben.pdfIn the context of this presentation “Refurbishment of Used...
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Jeroen GrubenVice-chair DITTA GRP taskforce
GM Refurbished Systems, Philips Healthcare
Medical Device Refurbishmenthealthcare in a circular economy
AHC-AHWP Joint WorkshopNovember 19, 2014Seoul, South-Korea
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In the context of this presentation “Refurbishment of Used Medical Systems” is defined as:“The process to restore used equipment or systems into a condition ofsafety and effectiveness comparable to when new. This includes actionssuch as repair, rework, update and replacement of worn parts withoriginal parts. All actions are performed in a manner consistent withproduct specifications and service procedures defined by themanufacturer for that equipment or system without significantly changingthe equipment’s or system’s performance, safety specifications and/orchanging intended use as in its original registration”
• Similar terms with sometimes different regulatory implications are used around the world.
• DITTA focus is on the process as defined above, rather than on the term used to define it.
REFURBISHMENT OF MEDICAL SYSTEMS
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DITTA is the Global Diagnostic Imaging, Healthcare IT, and Radiation Therapy Trade Association.
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Healthcare is evolving.Dramatically.
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We’re getting older and sickerAn increasing population in the developed world is projected to be chronically ill.
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The world population grows and ages
Source: UN, 2006 Revision of World Population Prospects, http://www.un.org/esa/population/publications/wpp2006/FS_ageing.pdf
World population by age group, 1950-2050
0,0
0,5
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1,5
2,0
2,5
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3,5
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4,5
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5,5
2000 20401960 1980 2020
0-1920-64>64
In Billions
Europe population by age groups, 1950-2050
0.00
0.05
0.10
0.15
0.20
0.25
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0.35
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20402020200019801960
20-640-19
>64
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We don’t take good care of ourselvesObesity, heart disease and cancer are global health issues that are worsened by the way we live.
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Demand for care is growingThere are simply not enough nurses and doctors to cope with our growing (and aging) population. Rising healthcare costs are unsustainable.
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The rate of change is acceleratingNew product innovation introduces both complexity and promise. We need another kind of innovation as well, one that is financially sustainable.
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Worldwide Healthcare Expenditure
grows to >US$ 10,000 bln in 2018 (estimate)
Healthcare, the world’s largest service sector
Worldwide Healthcare Expenditure >US$ 6,300 bln in 2011
Source: Frost & Sullivan
9%45%
4%
5%5%
31%
NA
IndiaRest of AP
ChinaLatAmJapanEMEA
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Our global economy is evolving as well.Exponentially.
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BUT IS IT SUSTAINABLE?
Temperature
Population
CO2
Ozonedepletion
1800 20001900
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ECONOMIC DEVELOPMENT COUPLED TO NEGATIVE ECOLOGICAL IMPACT
Source: WWF Living Planet Report 2013
North AmericaEurope
Other EuropeLatin America
Middle East/Central AsiaAsia-Pacific
Africa
Human Developments Index (life expectancy + education level + purchasing power)
Ecol
ogic
al F
ootp
rint
(glo
bal h
ecta
res
per
pers
on)
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Source: EMF Towards the Circular Economy 2012
COMMODITY PRICES GOING UP FAST
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SEPTEMBER 2010: THE ELLEN MACARTHURFOUNDATION IS LAUNCHED
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THE CIRCULAR ECONOMY 100 -PLATFORM OF LEADING COMPANIES
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CIRCULAR ECONOMY IS ALL ABOUT RETAINING VALUE
A circular economy aims to decouple economic growth from the use of natural resources by using those resources more effectively.
For a sustainable world, the transition form a linear to a circular economy is a necessary boundary condition.
Product refurbishment, improving reusability and new business models away from product ownership, will help us in the right direction.
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So how does this affect healthcare and our industry?
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LOOPS AND ENABLERS OF A CIRCULAR ECONOMY FOR MEDICAL DEVICES*
Parts supply
Distribution
Mining/materials manufacturing
Collection
User
Manufacturing
Recycle
Refurbishing
Parts harvesting
Maintenance
Reverse logistics
Design
Colla-boration
New business models
Enablers
* Specifically capital goods like medical imaging machines. Not referring to single use medical devices.
Refurbishing
1. Stringent Selection2. Skilled de-installation and
transport3. Expert refurbishing4. Effective installation5. Full warranty and support
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REFURBISHED MEDICAL IMAGING EQUIPMENT
Economy solution Typically 70-80% of new price
High Performance Previous or current generation
products
Risk Free Investment Same as new warranty Service back-up
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APPLIES TO DIFFERENT TYPES OFMEDICAL IMAGING EQUIPMENT
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US15%
AMI15%
MR22%
CT29%
X-ray19%
Modalities
GLOBAL MARKET FOR PRE-OWNED MEDICAL IMAGING EQUIPMENT
Total market ~ €1.3 Billion Historical growth rate ~ 6-8%
APAC10% LATAM
16%
US49%
EMEA25%
Sales regions
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GLOBAL DIAGNOSTIC IMAGING INDUSTRIES AGREED ON A JOINT POSITION IN REFURBISHMENT
MITA
GRP – Good Refurbishment PracticePosition Paper Industry Standard
TO GUARANTEE EQUIPMENT SAFETY AND EFFECTIVENESS
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HARMONIZATION IS CRUCIALLY IMPORTANT
Initiatives like this are critical to enable the required flow of goods, needed to provide sustainable access to safe and effective refurbished equipment and affordable healthcare.
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CONCLUSIONS
Medical Device refurbishment:• Is a globally growing concept• Offers economic solutions to help control cost in healthcare• Makes sense to more and more healthcare providers• Enhances access to care and contributes to a sustainable future• Deserves an internationally harmonized approach
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Thank you